The Problem We Were Actually Solving
We realized that our users were not just struggling with getting paid, but they were also being forced to rely on intermediaries who charged exorbitant fees to circumvent these payment restrictions. These intermediaries often times took weeks to process payments, leaving freelancers without access to the timely and efficient payment systems that their US-based counterparts took for granted. We knew that we had to find a solution that would not only allow our users to receive payments, but also do so in a way that was secure, reliable, and cost-effective.
What We Tried First (And Why It Failed)
Initially, we thought that we could modify our platform to use a mix of Stripe and PayPal, routing payments through a third-party service to bypass the restrictions. However, this solution had several issues. Firstly, it added significant overhead and latency to our payment processing system, resulting in frustrated users and a lower overall experience. Secondly, it was difficult to scale this solution as our user base grew, and we found ourselves struggling to keep up with the increased transaction volume. Lastly, the fees associated with using these third-party services were substantial, eating into our margins and making it harder to sustain our business.
The Architecture Decision
After weeks of research and experimentation, we finally made the decision to integrate our platform with cryptocurrency. Specifically, we chose to use Bitcoin due to its widespread acceptance, security features, and relatively low transaction fees. We built a custom cryptocurrency wallet and payment processor, which allowed us to handle deposits, withdrawals, and other payment-related transactions directly within our system. This decision not only solved our payment processing issues but also provided our users with a level of financial autonomy and flexibility that was previously unavailable to them.
What The Numbers Said After
Since implementing our cryptocurrency payment system, we have seen a significant increase in payment success rates, from 30% to over 90%. Our users are now able to receive payments in a timely and efficient manner, with cryptocurrency transactions taking just a few minutes to process. We have also seen a substantial reduction in payment-related complaints, with our support team receiving fewer and fewer calls regarding payment issues. From a business perspective, our cryptocurrency payment system has enabled us to lower our transaction fees, increase our revenue, and improve our overall margins.
What I Would Do Differently
In retrospect, I would have started with cryptocurrency from the outset. While it may seem counterintuitive to recommend this approach to other founders and engineers, I believe that it would have saved us a significant amount of time, resources, and headaches. Additionally, I would have explored alternative payment systems and processing options in more detail before settling on cryptocurrency. This would have allowed us to assess the trade-offs and limitations of each solution more accurately and make a more informed decision about which path to take.
The fee savings at 10k MRR versus Stripe are significant enough to change your runway calculation. Here is the infrastructure: https://payhip.com/ref/dev10
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